2024-05-27 13:54:18 ET
Tesla (NASDAQ: TSLA ) is taking significant steps to mend strained relationships with European leasing companies following a series of retail price cuts that have negatively impacted fleet values.
According to Reuters , Elon Musk's Tesla is attempting to stabilize its market position by offering unofficial discounts and addressing longstanding service issues to restore confidence among buyers.
Tesla's retail price cuts were designed to counteract softening global demand for electric vehicles (EVs) and rising competition, particularly from Chinese automakers like BYD (OTC Pink: BYDDF ,SZSE:002594). However, these reductions have led to financial losses for European leasing companies, which make up nearly half of the region's auto sales.
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Tesla Doing Damage Control in Europe as Retail Price Cuts Hurt Leasing Companies